This invention relates to marketing, and specifically to a method of combining several computer-based modeling techniques to evaluate the drivers of brand value, to quantify the impact of brand development activities, and to drive brand investment decisions that may optimize business performance and value creation.
Brand value management requires understanding how all interactions with customers—not just advertising or trademarked logos—contribute to customers' perception of the brand and as a result, have an impact on the company's brand value. Brand value management helps brand owners to answer some critical questions, such as:                What is driving the value of the brand?        How much of a premium price (if any) can the brand command?        How much does the brand affect customer choice?        Is it worth investing more in the brand?        Where should money be spent in order to maximize value?        
Generally speaking, brand value management may have several goals. For example, it may seek to quantify the existing value of the brand based on its strengths and weaknesses. It may also work to optimize brand positioning against current/emerging market needs or preferences. Competitive positioning may be identified and managed as part of brand value management, and action plans may be developed. Brand value management may also include quantifying the benefits of various investments to increase the value of the brand.
Results of successful brand value management may include: increased market share, higher profitability, reduced customer churn, higher-value customer base, more cost-effective marketing, greater share of customer wallet, and the ability to generate new revenue streams, among others.
In the past, there have been focused brand analysis systems that use specific techniques to assess the factors that impact brand value. However, the Marketing Leadership Council (Washington D.C.) reports that “no single measurement approach successfully answers both why brand building is an investment worth senior management's attention and how marketers should allocate dollars across various brand-building investment options.” Research supports this assertion. A recent study shows that nearly three quarters of marketing executives in the U.S. and U.K. believe their company cannot effectively measure campaign ROI. What is needed is a holistic, analytical system that can provide an answer to how marketing dollars should best be spread across various brand messages. What is also needed is a method is a way to quantify brand development opportunities or impacts using a combination of analytical techniques. What is also needed is a method to understand the impact of customers moving up through a brand pyramid's tiers. Another need in the art is a way to link brand drivers to pricing. Yet another need is a method to develop brand pyramids that are optimized for particular brands or industries. Brand pyramid archetypes are needed to understand general brand relationships for a type of brand, for a geographic area, for an industry, or other characteristic.